May 18, 2017

Black Earth Farming Ltd Q1 Report 2017

St Helier, Jersey, 2017-05-18 08:07 CEST (GLOBE NEWSWIRE) --

Frame agreement reached to sell Russian operations. Crop prices decline

1Q17 revenue and gain is up to USD 22.7mn (19.9) on increased sales volume. EBIT decrease of USD 5.3mn to USD -8.9mn (-3.6) is driven by further market price decline (corn -10%, Sunflowers  —14%  y-o-y) and higher COS resulting from decreased production in harvest year 2016. Negative profitability in the first quarter is expected and reflects business seasonality albeit exacerbated by falling crop prices. 1Q17 Net loss accounted for USD -9.4mn.

 On the 13th of February, the company entered into a framework share purchase agreement (the "SPA") to sell its Russian operations ("the Transaction") and distribute the proceeds to the shareholders. The purchaser is Volgo-DonSelkhozinvest LLC, who paid a USD 10mn deposit on the 16th February. On the 23rd of March, the EGM of Black Earth Farming shareholders approved the Transaction.

Q1 2017 Highlights1 (vs Q1 2016)

  • Total revenue and gains of USD 22.7mn (19.9)
  • Sales volume of 140.6kt (118.9)
  • Average sales price after distribution cost USD 128 per ton (124) 
  • Gross loss after distribution costs of USD -5.5mn (-0.2)
  • EBIT of USD -8.9mn (-3.6)
  • FX income of USD 1.0mn (0.4)
  • Net loss of USD -9.4mn (-4.6)

 

Subsequent event.

On the 12th of April, the proposed transaction with Volgo-DonSelkhozinvest LLC received regulatory approval from FAS - the Russian Antimonopoly body.

 

On 4 April 2017, 1.9 mn new shares were issued as a result of the 2013-2015 Company's management incentive program. Following the issue, the total number of outstanding shares became 212 mn.

 

On the 11th of April, the Company finished the remaining amounts of sunflower and corn harvest.

 

CEO Comment Highlights (p.2) Financial Overview (p.5)
· Market development
· 1Q17 Sales & Financials
· 2017 Crop
· Revenue Risk Management
· Summary
 
 
 
                                                        
USD million Q1 '17 Q1'16
Crop Volumes Sold (k tons) 140.6 118.9
Total Revenue & Gains 22.7 19.9
Gross Profit (Loss) after
Distribution
 
 afteristribution terDistribution
(5.5) (0.2)
EBITDA (6.1) (2.3)
EBIT (8.9) (3.6)
FX income 1.0 0.4
Net Profit (Loss) (9.4) (4.6)

 

Webcast details:

Date: Thursday, 18 May 2017

Time: 09:00 CET

Hosts:

Black Earth Farming CEO — Richard Warburton

Black Earth Farming CFO — Rostislav Samotsvetov

Dial-in details:

Russia 8 800 500 9283 or +7 495 213 1767

Sweden +46 (0)8 5033 6574 or 0200 880 389

UK +44 (0)330 336 9105 or 0800 279 6839

US +1 719-457-2086 or 800-263-0877

Conference title: Black Earth Farming, 1st Quarter 2017 results

Conference ID: 4804161

Webcast link:

https://pgi.webcasts.com/starthere.jsp?ei=1144697

Please quote the conference ID or conference title to access the call.

Please call in 5 minutes before the conference starts.

For additional information, please contact:

Richard Warburton, Chief Executive Officer, + 7 985 208 24 01, richard.warburton@BlackEarthFarming.com

 

Notes to Editor:

Black Earth Farming Ltd. (Jersey) is a farming company operating in Russia. Its shares are listed as depository receipts on Nasdaq OMX Stockholm. The Company develops and farms agricultural land assets primarily in the fertile Black Earth region in southwest Russia. Black Earth Farming has gained a strong market position in the Kursk, Tambov, Lipetsk and Voronezh areas, controlling some 246,000 hectares of what is possibly some of the world's most fertile soil. In 2016, Black Earth Farming harvested approximately 135,000 hectares, effectively making it one of the world's largest public farming companies by cropped area. The Company's main products are wheat, corn, barley, sunflower and potatoes.

Corporate website: www.blackearthfarming.com

For subscription to Company Announcements, please contact us at: svetlana.abakumova@blackearthfarming.com 
If you do not want to receive Black Earth Farming Ltd announcements, please send an e-mail to the same address: svetlana.abakumova@blackearthfarming.com

 

 

 


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